Simple Things You Need To Know About Online Stock Trading

Simple Things You Need To Know About Online Stock Trading

Before, people primarily depend on the services of a stock broker, who would make buy and sell orders on the customer’s behalf. But today, stock trading has become easier and manageably faster and available to all in the last 20 years, thanks to online brokerages. Individuals of today’s generation are able to perform buy and sell orders themselves in a split of a second using computerized trading service.

However, even with the present technology,trading online can still feel daunting and hiring the right online broker can build a difference in the correct investment decision. Trading stocks online can be a good source of initial or incremental income as a work from home-based option. To become a successful trader and really maximize the opportunity, it is very important to know what online trading really means, the tools in trading, and the theory behind it.

Read on for the simple things you need to know to have a better experience with online stock trading.

SELECT THE RIGHT ONLINE STOCK TRADING COMPANY

Indeed, doing a  research about various online trading companies is a very important thing, for you to get a better financial return on your investment. Online investment research needs attaining important facts and empirical data to make good and sound investment decisions. Luckily, a lot of online brokerages offer online tools and information to guide and help investors in choosing where to invest.

For rookies, you’d want to do some initial research about the company’s reputation. You may read reviews and comments from customers by other investors, anything that depicts the issues of mismanagement of money and personal identity is a sure big red flag.

WATCH COMMISSIONS

Paying for a broker is more expensive than trading online. You wouldn’t want to pay or spend a large amount of money for a commission on every transaction. However,  large companies normally get a large commission compare to smaller ones, so it is hereby suggested to do a research carefully first.

WATCH UNSEEN COSTS

Although online trading causes you to spend a much lower amount than what you would pay for a broker, you should still have to watch for unseen costs and facts that are usually divulged in the fine print. For instance, you may need to save a minimum amount in your account balance, or else, you will be charged a regular maintenance fee. Make sure to know what you are getting when you trade online, because some mistakes can be costly.

PICK AN EASY-TO-NAVIGATE PLATFORM

Some of these online platforms can be daunting and complex. Whether you have an easy or a bit complicated trading want, you still need an easy to navigate platform to help get familiarized with the environment of online trading. Will you need any special software or online tools for trading? It is still good to pick or select one that is easy to navigate and utilize, so you completely focus on your trading needs that will fundamentally help you avoid errors and committing costly mistakes.

 SEARCH FOR A WIDE VARIETY OF GOOD ONLINE TRADING COMPANIES

 You should gain access to a wide selection of good  online trading companies to choose from to buy, sell and trade in order to optimize your return. You can do more than in this case, it is certainly better so you gain knowledge about various companies and select the best on for your investment.

Educate yourself fully when it comes to working with online trading companies. The more you idea and knowledge you possessed, the more confident you will be with your stock market endeavors.

Be SMART in setting your Marketing Goals

Be SMART in setting your Marketing Goals

Setting marketing goal is probably one of the hardest and toughest things marketers have to do, because the goals  should be suitable for and back up the overall business goals. Marketing goals are the building blocks or the foundation of the marketing plan, the starting point of the plan. In short, these are specific objectives plotted in a marketing plan which can be tasks, quotas, improvements in KPIs, or other performance-based benchmarks used to measure marketing success. They can be a big  number, such as a certain year-end revenue figure. They might be a smaller number over a shorter period of time, such as four new clients per month. When explicitly stated, the goals are simple statement of the business’ culture or attitude: to be number one in customer satisfaction in a particular industry.

What does it mean to be SMART in setting your Marketing Goals?

Goals are great, but the thing is, they can be of no use if they are not grounded in reality. That’s why it’s very critical to set SMART goals.

Setting a SMART goal should be:

  • Specific

Set real number with real deadlines. Avoid unclear-set goals.

  • Measurable

Make sure that you can track your goal. Do not hide behind buzzwords like “brand engagement” or “social influence.”

  • Attainable

Work toward a goal that is arduous, but possible to achieve. Do not try to take over the world in one night.

  • Realistic

Be honest with yourself, because you know what your abilities are, and your team’s. Do  not forget any challenges you may need to overcome.

  • Time-bound

Give yourself a deadline. Do not keep pushing yourself towards a goal that you may “hit someday”.

Simple Steps in Goal Setting:

Step 1: Start with situation analysis

This first step defines your company, products and services, then shows how the benefits you provide set you apart from your competition.

Make your situation analysis a succinct overview of your company’s strengths, weaknesses, opportunities and threats. Strengths and weaknesses refer to characteristics that exist within your business, while opportunities and threats refer to outside factors. To determine your company’s strengths, consider the ways that its products are superior to others, or if your service is more comprehensive, for example. What do you offer that gives your business a competitive advantage? Weaknesses, on the other hand, can be anything from operating in a highly saturated market to lack of experienced staff members.

Next, describe any external opportunities you can capitalize on, such as an expanding market for your product. Don’t forget to include any external threats to your company’s ability to gain market share so that succeeding sections of your plan can detail the ways you’ll overcome those threats.

Step 2: Describe your target consumers or audience

You can describe prospects in terms of demographics—age, sex, family composition, earnings and geographic location—as well as lifestyle. Ask yourself the following: Are my customers conservative or innovative? Leaders or followers? Timid or aggressive? Traditional or modern? Introverted or extroverted? How often do they purchase what I offer? In what quantity?

You may define your target audience based on their type of business, job title, size of business, geographic location or any other characteristics that make them possible prospects, if you are a business-to-business marketer. No matter who your target audience is, be sure to scarcely define them in this section, because it will be your guide as you plan your media and public relations campaigns.

Step 3: Write your marketing goals

What do you want your marketing plan to achieve? For example, are you hoping for a 20 percent increase in sales of your product per quarter? Write down a short list of goals—and make them measurable so that you’ll know when you’ve achieved them.

Step 4: Create the marketing communications strategies and techniques you’ll utilize.

This section is the heart and soul of your marketing plan.

A good marketing program prospects at all stages of your sales cycle. Some marketing tactics, such as many forms of advertising, public relations and direct marketing, are great for reaching cold prospects. Warm prospects—those who’ve previously been exposed to your marketing message and perhaps even met you personally—will respond best to permission-based email, loyalty programs and customer appreciation events, among others. Your hottest prospects are individuals who’ve been exposed to your sales and marketing messages and are ready to close a sale. Generally, interpersonal sales contact (whether in person, by phone, or email) combined with marketing adds the final heat necessary to close sales.

To complete your tactics section, outline your primary marketing strategies, then include a variety of tactics you’ll use to reach prospects at some point in your sales cycle. For example, you might combine outdoor billboards, print advertising and online local searches to reach cold prospects, but use email to contact your warm prospects.

Step 5: Set your marketing budget

You will have to dedicate a percentage of projected gross sales to your yearly marketing budget. Of course, when starting a business, this may mean using newly acquired funding, borrowing or self-financing. Just bear this in mind—marketing is absolutely essential to the success of your business. And with so many different kinds of tactics available for reaching out to every conceivable audience niche, there’s a mix to fit even the tightest budget.

How to Determine Your Marketing Budget?

How to Determine Your Marketing Budget?

In the world of business, there are a lot of helpful areas to make the most money for the company. One of such is the marketing.  Marketing plays an essential role in doing business, without it, the trend about your life-changing product won’t reach your target audience’s ears and you’d just fail to achieve your goal of earning. Nevertheless, some businesses, either big or small, believe and admire their marketing labors enough to suitably assign ample budget for effective campaigns.

This candid guide will help you determine your overall expenses and plot an accurate budget for your company’s marketing needs.

What is Marketing Budget?

A predicted possible costs required to advertise or promote a product or services of a certain business. It will usually involve all promotional outlays, such as marketing communications — website development, advertisement and public relations. Also, it includes the expense in hiring marketing staff and even utilizing office area or space.

GUIDES IN MARKETING BUDGET

  1. Examine Overall Market Data

The appropriate marketing budget for your business is a totally unique thing, but assessing market trends and matching your business with others will ultimately help you know efficient techniques for allotting money to marketing.

As the economy stays unpredictable, marketing budgets across economic sectors has occasionally increased and decreased, but not specifically similar. For instance, if the marketing-related spending from business-to-business industry dropped, but businesses selling products to consumers increased their marketing expenditures. Your marketing budgets, then, will have increased or decreased depending on economic trends. These percentages include a sum of total of firm’s marketing expenses, from online to offline, and they serve as averages in economic zones. A lot of firms spend over the industry average because they want to increase their market shares, and others have budgets below the average, that hopes for a better financial growth to help other beneficial developments. Nonetheless, it is still very important to examine what your business as a whole is dedicated to marketing efforts while you formulate your own marketing financial plan.

  1. Compute your Personal Ratio

Aside from the economic trends, your budget should be affected by the permanence of your business, as well as, your average yearly income.

Rookie business firms, one to five years old, should be strong with marketing strategies. Although they depend more on brand reputation and respect, they are often less profitable than older. Devoting more money to marketing is more likely attract an audience faster, thus, for new enterprises, experts recommend 12% and 20% pledge of gross to marketing.

On the other hand, old business firms, 5 or more years, might have already successfully built brand awareness and have refined a profitable customer base. Thus, experts suggest a pledge of gross revenue between 6 to 12 percent.

However, if you are planning to build a new small business, you have to choose percentage depending entirely on your working capital. You have to be cautious with your allotment of startup funding and probably hold off on allotting great amount of money until you become certain that your business is feasible.

  1. Allot Marketing Budget

The amount of money you will dedicate to your marketing partakes a vital role in your business decision making, but often it is a more complex issue. And the one that has a major impact on the success of your business is when, where and how to spend your marketing budget.

Marketing is a wide field, as a lot of people consider taking to the unsteady and ever-changing web. In the following years, your marketing budget should go  to online sources of at least 30%. To help you in allocating your online budget, Forrester Research offers some industry insights:

  • Look for engine marketing

This includes keyword optimization, needs the most significant online allocating, and captures about 14% sum of marketing budgets.

  • Display advertising

This is the next largest, includes banner and re-targeting, and takes 10% of total marketing budgets.

  • Social media marketing

This one is quite cheap, but by no means free. Most companies dedicate 2% of their total marketing budgets for the maintenance on social sites.

A Must: Understand Your Stock Market Lingo

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Are you currently acquainting yourself with the stock market? Undeniably, you have to learn the basics. Like any other skill, learning the nitty-gritties is essential. Go over these several common stock market terms that you need to know as you tread on the journey of becoming a well-versed trader.

Here goes the list of expressions you need to know now.

  1. All the Boats Rise

 This is associated with the conception that improvements in the economy in general will then be beneficial to all participants. Another one is, when the stock market quickly escalates, there is a higher probability that the value of most stocks increase in value, which generally is brought about by over-optimism.

  1. Blue Chip Stocks

To refer to large and leading industries you can use this term. These companies have a stable record of substantial dividend payments and have a reputation of being a well-established and financially sound company operating for many years. They are usually market leaders or those belonging to the top three spots in its sector.

The expression was actually from a casino term, wherein blue gambling chips are regarded as the highest denomination chips being used.

  1. Bear Hug

 A bear hug is the name given to an offer made by a certain company when it wants to buy the shares of another company. The offer is regarded as an overly generous one since the price given is higher per-share than the original value of the company.

This term is being used only if the target company is unwilling to sell its shares.

  1. Black Monday

This refers to the day when the Dow Jones Industrial Average went down by 22% in a single day. There have been theories explaining that the crash happened due to mass panic.

The stock market crashed on October 19, 1987.

  1. Black Tuesday

This expression refers to October 29, 1929 or the day when sellers due to panic traded about 16 million shares on the New York Stock Exchange. It was also noted that Dow Jones Industrial Average decreased by -12%.

The Black Tuesday is known to be the beginning of the Great Depression.

  1. Cash Out

The moment when an investor decides to sell a stock knowing that the company where he or she invested has lost its good fundamentals such as increasing profits, low overhead and consistent earnings.

  1. Crash

It is often an instant and often unforeseen drop in prices of stocks. It can result from major disastrous events, economic crisis or most commonly, due to public panic.

  1. Dovish

This term refers to monetary policies involving low interest rates. The term was derived from the gentle and calm nature of the bird. Its opposite is termed as hawkish.

  1. Exchange

It is a place where different investments are being traded. The famous ones are the New York Stock Exchange and the NASDAQ, which are both located in the United States.

  1. Fear Index

The other term called to the VIX index. It usually measures the fear investors perceive in the market due to volatility concerns.

  1. Merger Monday

Usually, after the weekend, there are mergers or companies who bought other companies. The deals are usually closed over the weekend and are publicly broadcasted on a Monday.

  1. Misery Index

This is the sum of the unemployment rate added to the inflation rate. This term was popularized by President Jimmy Carter on his presidential campaign back in 1976.

  1. Summer Doldrums

In the summer months, since people are going on vacations, trading volume is noticed to be dropping as well. This term describes the time where stocks remain flat.

  1. Samurai Market

This is the market jargon for Japan Stock Market. It was derived from an iconic Japanese warrior known as the samurai.

  1. Yankee Market

This is the market jargon for the United States Stock Market. Americans are referred to as Yankees in a slang speech.

 

BWorld is here to help you reach your goal of becoming expert in the field of investing. We can help you learn, practice and master the art of investing. For further questions regarding online trading, commodities, stocks, technology, and economy – feel free to reach us here. We hope you will continue your trading journey with us. Let’s get started!

Getting to Know the Bull and the Bear Market

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The investing world is like a huge farm where the animals that can dominate the population can be either bulls or bears. Almost every day, you will encounter terms such as bull market and bear market. If you are a newbie with the market terms, you might wonder what these terms mean.

 

It is indeed important that you know these terms and what do these signify? Here you will know the characteristics of each market and how each can affect you.

 

Why do you need to know these terms?

Bull and bear markets indicate market conditions. The direction of the market is a vital force that can greatly affect your portfolio.

The definite origin of these terms is indeterminate, yet the following is the most believed and shared account. The bear and bull markets were derived from the way each animal strike its preys or victims. The bull tends to thrust its horn up into the air, whereas a bear usually strikes its paws in a downward motion. It was also noted that these animals were set to fight with each other or against other animals during the Elizabethan Era in London.

 

What do these terms mean?

These are used to describe the current status of the markets – how they are doing in general. The market is also being affected by the attitudes and feelings of the majority of investors, thus, these terms also denote their sentiments about the market and the ongoing trend.

 

When are these terms being used?

The market trend is being called bullish (bull market) if the inclination tends to rise or is positive. The market share prices tend to increase and this is being sustained in a long term period. The economy of a country is described to be strong; hence, it leads to a higher employment level.

There is also a weaker supply of securities, since majority of investors would like to buy such but only a few are inclined to sell.

Moreover, a bear market is correlated with a strong economy since people normally have the money to spend and they are willing to spend it, thus driving and strengthening the economy more.

On the other hand, the market is termed bearish (bear market) if it shows signs of declining. The market share prices are dropping uninterruptedly. During such phase, the economy slows down and unemployment is escalating for the reason that companies are starting to lay off their employees.

Following the law of supply and demand, during a bear market, more people are expecting to sell securities, but since the supply is higher than the demand, it results to dropping of share prices.

Lastly, a bear market is linked to a weaker economy since consumers are not really spending at all.

BWorld is here to help you reach your goal of becoming expert in the field of investing. We can help you learn, practice and master the art of investing. For further questions regarding online trading, commodities, stocks, technology, and economy – feel free to reach us here. We hope you will continue your trading journey with us. Let’s get started!

Know the Ways to Diversify Your Portfolio

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It is often usual to hear investment advisors telling clients to keep a diversified portfolio. A diversified portfolio (also known as portfolio diversification) is investing in different classes of assets and securities (i.e. stocks, bonds, commodities, etc.) as a way of avoiding damage or risk due to poor performance of a single security, industry, and the others.

 

Portfolio diversification is an established strategy that is developed to moderate potential losses in the market. It is indeed a battle cry for a number of financial advisors and individual investors. Learn in this article why a diversified portfolio is important in any market condition and how to diversify yours.

 

  1. Distribute and scatter your wealth.

 

This just simply means that it is not advisable to put all your investment in one sector or in a single stock. Invest in several companies that you know is worth investing your money.

 

  1. Consider bond index funds.

 

Bond index funds are the most basic and economical way to invest in bonds. It is a kind of fund that invests in a portfolio of bonds. An average investor can easily understand how bond index funds work. It is the most convenient option for those going after investment income.

 

Instead of actively managing your funds, this one simply holds the securities intact together and when the index’ composition changes, the holdings in the fund follows. Investing in bond index funds is a great way to diversify your portfolio in a long-term span. In addition, bond index funds are fixed-income solutions to guard your portfolio counter to market volatility and uncertainty.

 

  1. Keep on investing and building your portfolio.

 

Make it a habit to regularly add to your investments. Market volatility is best fought when you invest your money in a diverse portfolio of stocks or funds.

However, adding and adding companies on your portfolio does not guarantee you profits. You have to carefully choose your stocks. Learn the strengths and weaknesses of a stock before you pick it.

 

Allot enough time to make your research and focus your money and time on stocks that you think can boost your wealth.

 

 

  1. Be sure to manage your wide range of assets well.

 

Having a big and diverse portfolio is not the bottom line. It is generally alright to keep a wide range of assets and to invest in a large number of securities, but you got to be sure that you can keep on managing each well. Stay current with your investments. Moreover, remain in tune with the market condition. You have to know what is happening to the companies you have invested your money in.

 

The IBD Chairman and Founder, William O’Neil, even expressed that “the more stocks you own, the harder it is to keep track of all of them.” He further added that, “broad diversification is plainly and simply often a hedge for ignorance.”

 

Conclusion

Investing should be a fun endeavor. It is important to maintain a disciplined approach when you are trying to diversify your portfolio. As the old adage goes, “don’t put all your eggs in one basket.” Maintaining a diverse portfolio is essential to regulate the risks. A good asset mix is vital to earning solid and stable returns.

 

BWorld is here to help you reach your goal of becoming expert in the field of investing. We can help you learn, practice and master the art of investing. For further questions regarding online trading, commodities, stocks, technology, and economy – feel free to reach us here. We hope you will continue your trading journey with us. Let’s get started!

Why Investing is Important?

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Warren Buffet once said, “Never depend on single income. Make investment to create a second source.” Buffet is an American business magnate, investor and a philanthropist. He is also known as one of the second wealthiest person in the United States having a total net worth of $78.7 billion. He developed his fascination in business and investing during his youth.

 

Another amazing quote goes like this, “Anyone who is not investing now is missing a tremendous opportunity.” This was stated by Carlos Slim. He is like Warren Buffet – a business magnate, investor and a philanthropist. Back in the years of 2010 to 2013, he was ranked as the richest person in the world. He always wanted to be a businessman and began investing at a young age.

 

They are just two of the richest people known in the world. Now, what do you think is their common denominator? First, they are fascinated with the workings of the business world. Second, they began investing — and not just investing, they began at an early age.

 

Why investing is important?

 

Imagine working your whole life for an employer. You might be doing well at the moment – getting raises each year, progressing with your career, having the means to buy a house and a fine car, going to vacations every year, eating out with your family and enjoying the good things in life. However, you get old and your skills deteriorate. You might be able to save some money for retirement, but do you think it would be enough to get you through old age?

 

When you do investment, you let the power of compounding interest aid you while you save. Thus, you start by slowly accumulating your wealth over time. It is not just a scheme in getting rich quicker, but a time tested method proven to be true and advantageous by billionaires like Carlos Slim and Warren Buffet.

 

What are the benefits of investing?

 

  • You are being given the means to use during cases of emergencies

 

Financial crises are a part of life. There are times that you just are not or cannot be prepared about everything. If you were hit by startling circumstances, would you have the means to make it through that period?

 

With investing, it is like you are creating a financial cushion where you can bounce once life has dragged you down unexpectedly.

 

  • You are making yourself financially secured.

 

This is somewhat analogous to having yourself build a large cash reserve. Financial security depends on how much you allot for your investment. Building large cash reserve may mean lessening your future financial anxiety and becoming more empowered in the future.

 

  • You are giving yourself the chance to fulfill your financial goals.

 

You might be dreaming of buying a big house, a nice car, finance your children’s education as well as fulfill other goals written on your bucket list.

 

  • You are creating your own wealth.

 

There are various investment options that help you out to grow your money in a couple of years.

 

  • You are preparing yourself to fight inflation.

 

Inflation is like a savings-eating monster. Every year, prices keep on rising. With investment, it helps you protect your funds against inflation.

 

Conclusion

As the old saying goes, “save for a rainy day,” but since that is an old saying, it does not apply anymore in today’s situation. Investing is a proven way to help build your wealth rather than purely saving. It helps you expand your capital. Now that you have seen the importance of investing, getting started should be the next step. The choice is left to you. Do you think that going for that choice would let you enjoy the consequences later on?

 

BWorld is here to help you reach your goal of becoming expert in the field of investing. We can help you learn, practice and master the art of investing. For further questions regarding online trading, commodities, stocks, technology, and economy – feel free to reach us here. We hope you will continue your trading journey with us. Let’s get started!